Money Sense


Monday, October 8, 2007

Safety Margin List

What is a safety margin and how much is considered safe? Each and everyone of us have different views.

I have came up with a simple list of safety margins for those who are interested. What it means is for the amount of $xxxx invested in a particular counter, the minimum amount of percentage increment you should see as a safe exit to sell your counter without any loss, inclusive of commission fees!

Amount of $ invested , Amount of % increase(Include fees)
$1000 , 5.6 %
$1500 , 3.74 %
$2000 , 2.8 %
$2500 , 2.24 %
$3000 , 1.87 %
$3500 , 1.6 %
$4000 , 1.4 %
$4500 , 1.25 %
$5000 , 1.12 %
$5500 , 1.03 %
$6000 , 0.94 %
$6500 , 0.87 %
$7000 , 0.8 %
$7500 , 0.75 %
$8000 , 0.7 %

*These includes after deducting of commission fees ($25) and miscelleanous fees. Assuming each trade fee is $28, thus, a total fees of $56 max will be a rough gauge.